Tim Sykes Sues StockTwits

Discussion in 'Wall St. News' started by marketsurfer, Jun 22, 2011.

  1. Investors’ social-media site sues for breach of contract
    NEW YORK, May 19 (Reuters) – The creators of Chartly, a website that allows stock market followers to share market information on social media sites, are suing StockTwits, a social media platform for investors, for not properly compensating them.
    Pallian Creative Inc. and BullShip Press — the latter now known as Millionaire Media — are accusing StockTwits of merging the Chartly technology into their website and refusing to honor the contract they agreed upon in 2009, according to the lawsuit filed in New York Supreme Court Wednesday.
    Instead of paying them 50 percent of the revenue earned from the use of the website, StockTwits paid them $845 each, the lawsuit said.
    The plaintiffs contend that Chartly has been “the most highly-trafficked tool in the StockTwits network,” accounting for nearly one-fifth of all StockTwits traffic. StockTwits, according to the complaint, was recently valued at approximately $22 million.
    In a statement, StockTwits said it “has complied with the terms of our contract” and believes the complaint is baseless.
    The suit contends that Chartly’s founders “invested significant time and effort” developing the idea for the service in 2009, and soon thereafter approached Howard Lindzon, the co-founder and CEO of StockTwits. Lindzon allegedly told them that “StockTwits could and would market the website and its related functionality, there would be an ongoing business relationship between the parties, and StockTwits would compensate them for their efforts and for its use of the technology,” the lawsuit said. In May 2009, Pallian and StockTwits entered into a development-services agreement.
    Lindzon confirmed StockTwits’ breach of the agreement when he claimed that the plaintiffs had been paid their 50-percent share of gross revenue received by the company from advertising, according to the complaint. The plaintiffs added that Lindzon explained his decision by writing to them that “we have rewritten the code” to Chartly.
    The lawsuit accuses StockTwits of breaching the agreement and the implied covenant of good faith and dealing, as well as unjust enrichment.
    The case is Pallian Creative Inc. et al v. StockTwits, New York Supreme Court No. 651341-2011.
    For Pallian et al: Michael Rowe of Blank Rome.
  2. I hope Tim slaughters them.

  3. It will be interesting to say the least!
  4. pcp198


    I guess Timmy's not selling the $500 dvds fast enough..
  5. A snakeoil salesman suing someone.

  6. Maybe he was hoping for a hummer from Lindsay Campbell... I know I would be...
  7. AK100


    Love the company name 'millionaire media'.

    From just that name you know it's going to be heavy on the get-rich-quick-and-easy products.

    No doubt plenty of 'secrets the pros don't want you to know'.....:)
  8. dog eat dog
  9. anyone trust any of these shills?


    would you buy a used car from linzdon?

    I wont even ask about sykes, even you clowns arent that dumb
    #10     Jun 26, 2011